ENS Labs, the organization behind the Ethereum Name Service (ENS), is making waves with an exciting new development: the creation of its own Layer 2 (L2) network called Namechain. This move is part of ENS's ongoing efforts to improve its decentralized naming system, which assigns readable names to cryptocurrency addresses on the Ethereum blockchain. Namechain, slated for launch around the end of 2025, will focus on scalability, lower transaction costs, and enhanced interoperability, setting a new standard for Ethereum-based naming services.
The Ethereum Name Service (ENS) has become a cornerstone of the decentralized web, providing an easy-to-read alias for Ethereum wallet addresses. While ENS has gained significant traction in the crypto community, its reliance on the Ethereum mainnet for transactions can result in high gas fees and slower processing times. Namechain aims to address these limitations by moving transactions off the main Ethereum network, using zero-knowledge proof (zk) technology to maintain Ethereum's security while drastically reducing costs.
Jeff Lau, co-founder of ENS, highlighted the uniqueness of this initiative at the "frENSday" event in Bangkok, noting that unlike other rollups (Layer 2 solutions built on Ethereum), ENS does not need to prioritize Total Value Locked (TVL), a key metric for many Layer 2 projects. "ENS already has users," Lau explained, "and we can prioritize things that other L2s don’t." With the new Namechain network, the ENS team is focused on optimizing for user experience and interoperability, not just scaling to handle more assets.
The Namechain network will leverage zkEVM (Zero-Knowledge Ethereum Virtual Machine) to achieve fast finality, which ensures that transactions are confirmed almost instantly and with a high level of security. Zero-knowledge proofs allow Namechain to execute transactions off-chain, reducing congestion and high gas fees on Ethereum’s Layer 1, while still offering the same security guarantees as the main Ethereum network.
One of the standout features of Namechain will be its Layer 2-to-Layer 2 interoperability, which will enable seamless bridging across different Layer 2 networks. This means that users will be able to "commit" and pay for transactions from their preferred Layer 2 network, making the process more flexible and user-friendly.
One of the key goals of Namechain is to make ENS registration and management much more affordable. According to ENS Labs, the transaction fees on Namechain will be reduced by 99% compared to Layer 1 Ethereum networks. This dramatic cost reduction is expected to make ENS much more accessible to users, particularly those in emerging markets or those looking to build within the Web3 space without the burden of high gas fees.
Furthermore, by controlling the entire stack from the protocol layer to governance, Namechain can optimize the user experience (UX) directly within the protocol. This level of control allows ENS to avoid the complexities and limitations that can arise when deploying on other public chains, where integrating a user-friendly experience is more challenging.Lau also emphasized that Namechain is designed to be "L2-agnostic", which means users will be able to start their ENS journey from any compatible Layer 2 network. This cross-network compatibility will allow users to leverage their ENS identities across multiple Ethereum L2s, further enhancing the flexibility and utility of the naming service.
Namechain is an integral part of the ENSv2 project, a broader initiative aimed at extending the ENS protocol to Ethereum Layer 2 networks. Announced in May 2023, ENSv2 seeks to make ENS more flexible, affordable, and scalable, enabling decentralized identity management to thrive in the Web3 ecosystem.
In addition to improving scalability, ENSv2 aims to preserve the decentralized nature of the Ethereum Name Service, a critical aspect of ENS that differentiates it from other centralized naming services. The introduction of Namechain will further these goals, creating a robust, decentralized naming infrastructure that can support Ethereum’s growing ecosystem of decentralized applications (dApps), NFTs, and beyond.
ENS Labs has already selected its Layer 2 partners for Namechain, although the specific partners have not been disclosed. These partnerships will be critical in ensuring Namechain’s interoperability with other Ethereum-based networks. The integration of ENS with platforms like PayPal and Venmo earlier in 2023, which allowed users to send payments via ENS names, is an example of how ENS continues to expand its use case beyond the blockchain.
As of September 2023, ENS had over 2 million ENS names registered on-chain and over 4 million names off-chain, showing the growing adoption of the service. With the introduction of Namechain, ENS is poised to become an even more integral part of the Ethereum ecosystem, empowering users with easy-to-use, cost-efficient decentralized identities.
With Namechain, ENS Labs is setting the stage for a new era of decentralized naming systems. By reducing costs, increasing speed, and improving interoperability, Namechain will significantly enhance the ENS ecosystem and provide the foundation for the next generation of decentralized applications and services. As the Ethereum ecosystem continues to grow, Namechain’s focus on scalability and user experience positions it as a critical infrastructure project that could shape the future of Web3.
The launch of Namechain in 2025 will mark a significant milestone in ENS’s ongoing evolution, reinforcing its commitment to decentralized identity management and the broader Web3 vision. Through innovations like this, ENS Labs is continuing to lead the charge in making the decentralized web more accessible, efficient, and user-friendly.
November 2024, Cryptoniteuae